ChainCatcher reports that, according to Cointelegraph, the latest working paper released by the European Central Bank on Tuesday shows that the growth in stablecoin usage is drawing funds away from bank deposits, weakening the transmission of monetary policy to loans.
The research indicates that rising interest in stablecoins is associated with a significant decline in retail bank deposits and a reduction in corporate loans. When deposits decrease, banks may be forced to rely more on wholesale or market financing, which is typically more expensive and less stable. The European Central Bank notes that the extent to which stablecoins disrupt the transmission channels of monetary policy depends on their scale of adoption, design features, and regulatory approaches. In particular, stablecoins denominated in foreign currencies may further weaken the link between domestic monetary policy and bank loans.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Wells Fargo Bank Adjusts Forecast: The Federal Reserve Will Keep Interest Rates Unchanged in 2026
Gate News announcement, April 6, Wells Fargo adjusted its forecast for the Federal Reserve (U.S. Federal Reserve System) 2026 interest rate policy, expecting the Federal Reserve to keep interest rates unchanged in 2026, whereas the prior forecast was for two rate cuts this year.
GateNews7h ago
Citigroup Adjusts Its Fed Rate-Cut Outlook: Delaying From June to September
Gate News, April 6, Citibank adjusts its expectations for Federal Reserve rate cuts, forecasting that the timing for the first rate cut will move back from the previously expected June to September.
GateNews8h ago
Institution: Cooling expectations for rate cuts, and easing expectations around Middle East conflict or limiting upside space for gold prices
Sky Links Capital CEO Daniel Takieddine said that, as expectations for Federal Reserve rate cuts weaken, the upside potential for gold is limited. The price of gold is influenced by strong U.S. labor data and geopolitical risk. He noted that gold’s near-term performance will depend on U.S. economic data and policy signals.
GateNews11h ago
The Bank of Japan avoids committing to an April rate hike; the market expects a 66% probability of a rate hike this month
The Bank of Japan has issued cautious signals through its quarterly economic report, expressing hesitation about raising interest rates—especially amid rising uncertainty and concerns about price increases. The market estimates the likelihood of a rate hike this month at about 66%. When dealing with inflation, companies continue to face rising costs and consumer fatigue.
GateNews12h ago
CME "Fed Watch": 98.4% probability that the rate will be held unchanged in April
Gate News message. On April 6, according to today's CME “FedWatch” data, the probability that the Federal Reserve keeps interest rates unchanged in April is 98.4%, and the probability of a 25-basis-point rate hike is 1.6%. The probability that the Federal Reserve will keep interest rates unchanged cumulatively by June is 96.6%, the probability of cumulative 25-basis-point rate cuts is 1.8%, and the probability of cumulative 25-basis-point rate hikes is 1.5%.
GateNews21h ago
